Property Economics
Dwelling values continue to rise with momentum slowing
The CoreLogic RP Data index showed a +0.2% rise across the combined capitals, with growth for the March quarter up 1.6%. Sydney and Melbourne are pushing forward, posting 2.0% and 2.2% respectively for the March quarter. Hobart was down -1.1% for the month but still managed to end on 6.5% for the March quarter. It’s…
Read MoreThe questions we’re asked on a daily basis
Navigating the world of property depreciation can be a daunting task for property investors. Our aim is to simplify the process, eliminate the B.S. and arm investors with the knowledge they need to get the most out of their property. With that in mind, we thought it would be a good time to answer some…
Read MoreNegative Gearing and the Mum and Dad Investors
Much has been posited about the typical Australian property investor, especially their salary. According to the ATO, 67% of investors claiming rental interest deductions take home under $80,000 per year. At least as far back as 2014, the data has been pulled apart and commentators have asserted that the data is flawed. Their argument is…
Read MoreWhich terms in real estate ads result in higher prices?
In a recent study in Canada by a Professor Paul Anglin, an analysis of the language used in real-estate ads shows that certain words are strongly correlated with the final sale price of a house. Surprisingly words like ‘charming’, ‘spacious’ and ‘fantastic’ do not equate to a higher sale price. The study dissected the wording…
Read MoreThe property market in Darwin – Still a hotspot?
I thought I’d take a look at a property market that’s been getting a lot of press lately: Darwin. This property market has been attracting a lot of attention based on the fact that capital gains within the Darwin housing market have been outperforming the broader capital city average since early 2004. It’s easy to…
Read MoreRBA Meeting Minutes March 2013 – Construction Activity
The RBA’s March 2013 meeting minutes were issued today and with respect to the property market, the minutes stated “non-residential building approvals remained low and office vacancy rates had risen over recent quarters, reflecting softening demand for office space.” Members also observed that “dwelling construction activity had picked up further in the December quarter. Forward-looking indicators…
Read MoreConsumer House Price Expectations Index Moderates in January 2013
The Westpac-Melbourne Institute Consumer House Price Expectations Index moderated in January, all but reversing a spike in October. The Index indicated that 26.7% of respondents expect house prices to rise over the year ahead. This is a fall of 7.7pts from October, following a rise of 9.1pts between July and October. This reversal of consumer’s…
Read MoreRBA leave the cash rate at 3.25%
At its November board meeting today, the Reserve Bank decided to hold the cash rate steady at 3.25%. “Further effects of actions already taken to ease monetary policy can be expected over time. The Board will continue to monitor those effects, together with information about the various other factors affecting the outlook for growth and…
Read MoreLessons from Freakonomics – Are real estate incentives aligned with the goal of achieving the highest price?
** This article appeared on Property Observer Today ** I’ve recently returned from some time in the United States, and I always find Americans’ service gratuity or ‘tipping’ an interesting contrast to life back in Australia. Tipping got me thinking of the book Freakonomics (which I’d recommend to anyone who’s interested in bizarre correlations and…
Read MoreMay RBA Minutes point to weakness in housing market
May’s RBA board meeting minutes outline the rationale behind their 50bp reduction of the cash rate. The minutes note that the domestic economy had been growing at a modest rate in early 2012 however, the activity varied across industries. The mining sector remains strong with a number of large projects underway and on the drawing board.…
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